Now imagine someone with a million dollars as investing money... decide to buy 100 btc with the price at 10k a coin to make it simple. I don't want to use an altcoin as an example because those are risky and you can easily lose everything as coins do drop to zero... so basically stick with the top coins on the list. Now let say btc went up and down for the next few days and then btc went up to say 10500, now the person sells all 100 btc for 1.05 million dollars. Let say trading fees are 0.25% fees. Is that the rate now for trading btc? Now in the first transaction, to buy a million dollars worth of btc.. fee would be 2500 dollars right? Then when you sell the btc... fee is 2625 dollars... can anyone confirm the math here?
Yes, your math is
correct. When you place a buy order, you need to enter the desired price and the dollar amount you wish to spend. The cryptocurrency exchange will automatically calculate the amount of bitcoins you will receive if this order is fully executed. In other words, you need to make a deposit and bid $1002500 to buy 100 bitcoins at the price of 10000 USD per 1 BTC with a fee of 0.25%. When you place a sell order, you offer 100 bitcoins at the price of 10500 USD per 1 BTC. The cryptocurrency exchange will give you only $1047375, so the profit will be $44875.
In my opinion, having a lot of investing money does
not make trading easier at all. When you trade a large amount of different assets, you can lose a lot of money if you make a wrong financial decision. Moreover, a centralized exchange can be hacked at any time. This incident could lead to bankruptcy of the company. You
should manage all risks
no matter how much bitcoin you trade.
Well you say when you trade a lot of different asserts, you can lose a lose of money. Well even if btc went down to say 7k here... u aren't down any money until you sell though correct? Nobody loses or wins until they sell. So you just wait till it goes over that bought price... of course it might never go back or take a long time to go back.
But in my example, i feel like if someone has a million dollars, just buying low and selling high with btc and those top coins... seems safe though? I mean the odds of btc dropping really low would be hard right? Now obviously this example i give, i would not use it for other coins not in the top 5 list for example because those are risky. Like if you stick with the big main coins, btc etc... shouldn't it feel safe?